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  1. EFFECTIVE Negotiation SKILLS
  2. Meaning of negotiation • “Negotiation involves two or more parties with competing or conflicting interests or needs, working towards an agreement on how they will cooperate.” Back and forth communication through which parties which have both common and dissimilar interests may reach agreement 2
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  4. Perception How many squares can you see?
  5. EXAMPLES OF NEGOTIATIONS  involving obtaining support and cooperation  procuring funding,  approval of budgets,  formulating and implementing projects  securing contracts,  purchasing,  union and personnel matters,  trade and tariffs,  marketing of goods and services,  engaging consultants,  community dispute resolution 5
  6. • International/diplomatic matters (which may be bilateral, regional and multilateral) • environmental issues • hostage incidents and crisis management. • Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. 6
  7. IMPORTANCE OF NEGOTIATION • Negotiation is an integral activity in professional and organizational life. • Effective negotiation skills are becoming increasingly important in today’s world - a survival skill for individuals, organisations and nations. • It is a daily activity for all professionals, managers and administrators 7
  8. • Negotiations are not only for the economic and social development of their respective organizations and countries, but sometimes for the survival and development organizations and nations. 8
  9. A country’s economic competitiveness abroad faces many obstacles: Protectionism in foreign markets, unfair trade practices by other nations, failures in international 9
  10. Approaches to negotiations Positional vs Interest based -(purple)Principled/ collaborative/problem solving -(red)competitive /contending/ Dominating -(Blue)Cooperative/ yielding/ accommodating or obliging 10
  11. Negotiating Behaviour Gavin Kennedy (The New Negotiating Edge) describes 3 types of behaviour that we can display and encounter when in a negotiating situation RED BLUE PURPLE 7
  12. RED Behaviour • Manipulation • Aggressive • Intimidation • Exploitation • Always seeking the best for you • No concern for person you are negotiating with • Taking 8
  13. BLUE Behaviour • Cooperation • Trusting • Pacifying • Relational • Giving Kennedy talks of a ‘behavioural dilemma’, do you cooperate (blue) or defect (red)? Can you trust the other person? And to what extent? Trusting someone involves risk, on the one hand being too trusting is naïve and on the other, not trusting at all can create deceitful behaviour. The answer is to merge blue and red behaviour into purple. 9
  14. PURPLE Behaviour • Give me some of what I want (red) • I’ll give you some of what you want (blue) • Deal with people as they are not how you think they are • Good intentions • Two way exchange • Purple behaviour incites purple behaviour • Open • People know where they stand To the red behaviourist the message is loud and clear, ‘You will get nothing from me unless and until I get something from you’. 10
  15. The Four Phases of Negotiation Prepare Debate Propose Bargain 11
  16. PREPARE - Prepare carefully well in advance – Prepare for negotiations and not defending – Be ready for opportunities • Five key areas of preparation – Objectives – Information – Concessions – Strategy/Style – Tasks 16
  17. Preparation-objectives – Define what outcome you want to achieve from the negotiation- ISSUES – The realistic expectation against each issues- INTEND – Minimum acceptable position on intends- MUST ACHIEVE or AVOID – What is the ideal outcome you want – WISH LIST 17
  18. Preparation-information – Research both parties – Analyze the basis of power for both – Do SWOT for both – Prepare questions in advance – What is the BATNA of the opponent – What is their awareness in regard to your issues and needs 18
  19. PREPARATION- Concessions – Where can we be flexible? – What concessions can we make? – What can we give in order to what we want – TRADE – What value the concessions have to the other party? – What will you ask in return? 19
  20. PREPARATION-Strategy – Keep it SIMPLE and FLEXIBLE – Avoid confusing strategy ( means) with objectives ( objectives) – E.g. Take the train ( strategy ) to London (objectives ). If you meet a “ gate “ adjourn or reconsider . 20
  21. PREPARATION- Tasks -Leader- conducts the negotiation, gives information, expresses opinions, makes proposals, trades concessions. – Summarizer- asks questions to test understanding, draws attention to , clarifies , summarizes to buy thinking time, confirms areas of disagreement and agreement . Does NOT give personal opinions, information's, and concessions, – Observer- watches, listens, records and tries to understand the motivation , concerns, priorities, & inhibitions, 21
  22. DEBATE • Positive Powerful opening – confident body language, tone and words • Break the ice and discuss neutral topics and build rapport • Cover: Why we are here, what we are going to do, how long it will take • Emphasise the need for agreement at the outset 19
  23. • Listen to what the other party say and how they say it • Observe non-verbal signals • Sit where you can see everyone • If you are with one other person sit apart – so you are 2 voices. 23
  24.  Don’t feel intimidated – both sides are under pressure. The person under the greatest time pressure loses – so don’t reveal your deadlines.  Always maintain walk away power • Exchange information through statements. Explain and explore the differences that prompt the search for a negotiated 24
  25. • Use questions to elicit information not to fuel argument. Questioning is an important negotiating skill, and demonstrates your willingness to understand the other negotiators interests • Actively listen, don’t pretend to listen and don’t wait to speak – give the speaker your full attention. • Summarise their views too their satisfaction to demonstrate you have understood. 25
  26. PROPOSE • Decide whether you will speak your proposal first or respond to the proposal from the other party. • Put forward your proposal with as little emotion as possible. • Leave room for manoeuvre in your proposal • Full Disclosure – really means 90%. You may not know or are unwilling to disclose 100% of your position. This can be very productive – reaching out to the other party can be a strong positive behaviour builder, however, both parties must want to negotiate towards agreement. Be assertive 24
  27. • Avoid – ‘wish’, ‘hope’, ‘would like’ – this is not assertive • When you make and consider proposals it means you are moving towards a jointly agreed solution. • Proposals consist of 2 elements: the condition plus the offer and can be best presented with the ‘If ….Then’ technique. PROPOSE 27
  28. Answer: Specific-Vague. Specific in the condition, but vague in their offer. • Being vague in the offer is a sign of proposal. • It isn’t an exact science and you don’t have to follow a set pattern, but research shows that effective negotiators do move from vague to specific in their proposal. • Being vague gives you some leeway, as you don’t know how near or far you are from the point of settlement, and prevents you from getting to an impasse. PROPOSE 29
  29. • By being vague instant rejection and instant acceptance is not appropriate. How can you accept something that isn’t specific? • Conditions can be vague or specific. • You can have specific proposals, but beware of being hasty. 29
  30. • If agreement is hard to find keep looking for a solution until one is found or, it is clear that one doesn’t exist. • You then have to either agree to disagree and call a halt to negotiations or, if the consequences or alternatives are not acceptable then negotiation has to continue. 30
  31. bargaining Bargain is any trading activity , You can bargain at any stage of the negotiation: – For information – For concessions – For signals – For time’ for the deal – The fundamental rule in bargain is TRADE. You should always have an answer to the question “ What did you get in return? – Be prepared to concede in areas of lesser importance to gain in areas of greater importance 31
  32. BARGAINING • A bargain can signal the conclusion of the negotiation. In Scotland solicitors close a negotiation by announcing ‘a bargain is concluded’. • Phrases like: ‘So, what you are offering is…’ ‘Ok I get the picture…’ ‘Let me be clear, you want x for y’ ‘Here’s how I see it….’ ‘To sum up, in return for x I’ll agree to y’ Show that the two parties are moving towards each other and the negotiation is coming to agreement. 33
  33. Closing the Negotiation Summary Close Summarise the details of the conditions and the offer, and ask for agreement. Adjournment Close Useful where there remains some small differences. It gives both parties time to consider the final agreement. Final offer close Make it clear that this is your final offer by choosing the right words, tone and body language. Create an atmosphere of decisiveness, gather your papers together as though getting ready to leave. 35
  34. CONCLUSION In an increasingly complex and diverse world, negotiations are becoming increasingly important in managing relationships, and solving conflicts at work, at home and even in the community. However, like all good communication skills, negotiations skills improve with practice. 34